Turnkey construction contract

(redirected from Turn-Key Construction Contracts)

Turnkey construction contract

A type of construction contract under which the construction firm is obligated to complete a project according to prespecified criteria for a price that is fixed at the time the contract is signed.

Turnkey Construction Contract

A construction contract in which the price is fixed at the time the contract is signed. As a result, the construction company is held responsible for exceeding the budget. Turnkey construction contracts reduce the risk to the buyer of the construction services and provide an incentive for the company to stay within budget.
References in periodicals archive ?
Transener has taken several steps to reduce the risks associated with project construction and completion, including obtaining turn-key construction contracts from reputable contractors; the contractors also indemnify Transener for any penalties that Transener may be assessed for late completion of the facilities.